Eli Lilly & Co. is on the cusp of achieving a monumental milestone, potentially becoming the first health-care company in the U.S. to surpass a $1 trillion market value. This comes as the pharmaceutical giant continues to capitalize on the unprecedented demand for its weight loss and diabetes medications.*

Eli Lilly’s meteoric rise is largely attributed to its successful incretin-based drugs, Zepbound and Mounjaro. These medications, designed to mimic gut hormones that suppress appetite and regulate blood sugar, now represent nearly 40% of the company’s total sales, according to its August second-quarter earnings report. The soaring demand for these treatments has significantly boosted the company’s revenue and market position.

The weight loss drug market, which Eli Lilly is a leading player in, is projected to be worth $150 billion by the end of the decade. As Eli Lilly advances in expanding its drug supply, it appears to be gaining an edge over its chief competitor, Novo Nordisk. While Novo Nordisk is also heavily investing in increasing its manufacturing capabilities, its weight loss and diabetes drugs, Wegovy and Ozempic, have recently fallen short of sales expectations due in part to pricing pressures in the U.S. market.

Investors are also optimistic about the potential additional health benefits of Eli Lilly’s treatments. Recent studies have highlighted Zepbound’s potential in addressing obesity-related conditions such as obstructive sleep apnea, fatty liver disease, and cardiovascular issues, further enhancing the drug’s long-term revenue potential.

Eli Lilly’s stock has surged more than 60% this year alone, pushing its market value to nearly $900 billion. The company’s stock experienced a nearly 10% increase on August 8, following a stronger-than-expected second-quarter earnings report. Analysts predict that Eli Lilly could achieve another impressive financial performance when it reports its next quarter results on October 30.

The company is also set to benefit from upcoming data releases and regulatory decisions. Eli Lilly anticipates a Food and Drug Administration (FDA) ruling on Zepbound’s approval for treating sleep apnea by the end of the year. Additionally, Eli Lilly may unveil data from a pivotal trial comparing Zepbound directly to Novo Nordisk’s Wegovy, which could further influence investor sentiment and stock performance.

As Eli Lilly continues to push the boundaries of pharmaceutical innovation and market leadership, the potential to reach the $1 trillion market value milestone seems increasingly within reach.